• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Tech

Why Waymo’s alliance with UPS is a big deal for autonomous vehicles

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
January 31, 2020, 8:30 AM ET

Waymo, the self-driving car unit of Google’s parent company, notched a big win this week by announcing a partnership with UPS to ferry packages in Phoenix. 

Initially, Waymo’s automated delivery vans will drive packages from UPS stores around Phoenix to a central sorting facility. The goal is to add cheaper capacity to a system that otherwise relies on shuttling packages in human-driven trucks.

Since its initial experiments with self-driving cars, Google, and then Waymo, has made huge advances autonomous driving. A few weeks ago, Waymo announced it had surpassed 20 million autonomous miles driven on public roads.

Now Waymo must overcome regulatory and financial hurdles. While Phoenix and a few other cities allow self-driving vehicles to operate without backup human drivers, most others do not. Meanwhile, Waymo is still trying to turn its sci-fi technology into a business. If human backup drivers are required, the company’s self-driving cars may never make financial sense.

That’s where UPS comes in. The package-delivery giant is known for tapping the clever innovations of others for its sprawling delivery network. For example, UPS’s latest sorting facilities are filled with cutting-edge image-recognition and artificial-intelligence technologies that track where packages are supposed to go and then determine how to get them to their destinations as quickly as possible. In earlier eras, UPS pioneered using airplanes and handheld computers.  

UPS, with all of its logistical and process improvement expertise, will have a good chance of figuring out how to make operating autonomous vehicles efficient and profitable. After all, this is the company that carefully studied whether it was better for drivers to stow their handheld computers on the right or left sides of their bodies.

For its part, Waymo already has a head start in Phoenix. It has used the city as a test bed for a truly self-driving taxi service–no humans just in case–that has 1,500 regular customers.

UPS should also be a useful ally in the regulatory arena. 

Drone startup Matternet might still be just one among hundreds of companies if not for its partnership with UPS to deliver medical samples to a hospital lab in Raleigh, N.C. Last year, the joint effort became the first in the country to gain an unrestricted Federal Aviation Administration certification for commercial delivery flights beyond the sight of the operator. No doubt, the participation of steady and reliable UPS helped reassure the FAA that the experiment wouldn’t veer off towards Facebook’s old motto of “move fast and break things.”

UPS’s influence clearly makes a difference. During a test in Raleigh, the companies carefully chose the routes the drones would fly to minimize the amount of time spent over populated areas. In Switzerland, where Matternet had conducted tests with other partners, the partners decided to suspend their operations for months last year after a drone crashed near some school children.

UPS could have a similar influence on Waymo, and likely a similar reassuring effect on Waymo’s regulators. If more states and municipalities decide to allow driverless vehicles in the next few years, Waymo and its rivals may have UPS, or “Brown” as it’s known to insiders, to thank.

Of course, autonomous delivery trucks won’t entirely take humans out of the UPS equation. The company will still need to humans to load and unload Waymo’s vehicles, at least until some company comes up with technology to replace them.

More must-read stories from Fortune:

—The long ocean voyage that helped find the flaws in GPS
—Global companies enter lockdown mode as coronavirus rocks China
—3 key takeaways from Tesla’s blockbuster fourth-quarter earnings
—Facebook says its ad machine is being weakened by privacy changes
—Predicting the biggest tech headlines of 2020

Catch up with Data Sheet, Fortune’s daily digest on the business of tech.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

chaplin
AIAI agents
‘Intelligence may be scalable, but accountability is not’: A new report exposes the hidden cost of the AI agent revolution
By Nick LichtenbergMarch 26, 2026
22 minutes ago
wyle
HealthTV
‘The Pitt’ shows an ER getting shut down by a cyberattack that is totally true to life
By Jeffrey Tully, Christian Dameff and The ConversationMarch 26, 2026
52 minutes ago
CryptoCryptocurrency
Foreign exchange startup XFX raises $17 million to help businesses go between cash and stablecoins
By Ben WeissMarch 26, 2026
2 hours ago
John Zhao smiles and crosses his legs
Startups & VentureHealth
Exclusive: Blossom Health raises $20 million to bring an AI ‘copilot’ to psychiatry
By Lily Mae LazarusMarch 26, 2026
2 hours ago
NewslettersTerm Sheet
The one-person unicorn: Myth, miracle, or the future of startups?
By Allie GarfinkleMarch 26, 2026
3 hours ago
kennnedy
CommentaryDrugs
America is handing its mRNA lead to China—and RFK Jr. is to blame
By Jeff CollerMarch 26, 2026
3 hours ago

Most Popular

Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
2 days ago
Magazine
The youngest-ever female CEO of a Fortune 500 company is fighting Trump's cuts to keep Medicaid strong
By Fortune EditorsMarch 24, 2026
2 days ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
3 days ago
C-Suite
'I didn’t want anybody shooting me': Five Guys CEO gave away $1.5 million bonus to employees over botched BOGO burger birthday celebration
By Fortune EditorsMarch 25, 2026
19 hours ago
Success
JPMorgan’s Jamie Dimon says remote work breeds ‘rope-a-dope politics’ and stunts young workers’ growth
By Fortune EditorsMarch 25, 2026
23 hours ago
Success
The job market is so bad that ‘reverse recruiters’ are charging $1,500 a month just to help people look for jobs
By Fortune EditorsMarch 25, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.